Lisa's Feed
Sep 12, 2014

Detroit end in sight as deals leave FGIC last major bankruptcy holdout

DETROIT (Reuters) – With key players in Detroit’s historic bankruptcy case locked in marathon mediation sessions, the pressure is on bond insurer Financial Guaranty Insurance Co., the last major holdout creditor, to settle with the city.

Judicial mediator Gerald Rosen has ordered the city and some of its major creditors including FGIC to keep talking until they come to an agreement. Another deadline looms outside of the court process: Kevyn Orr, the city’s emergency manager, is expected to end his term on Sept. 29.

Sep 11, 2014

Detroit bankruptcy trial on hold after landmark insurer deal

DETROIT, Sept 10 (Reuters) – A federal judge has delayed
until Monday the landmark trial on Detroit’s plan to exit
bankruptcy, as the city neared a deal with bond insurer Syncora
Guarantee Inc, one of its most formidable hold-out creditors.

Syncora had argued it had been short-changed compared with
other creditors. As part of the deal, Syncora will drop its
objection to the restructuring plan, which could clear the way
for the plan to win swift approval from U.S. Bankruptcy Judge
Steven Rhodes.

Sep 11, 2014

Detroit bankruptcy trial delayed until Monday by U.S. judge

DETROIT (Reuters) – A federal judge has put a landmark trial on Detroit’s plan to exit bankruptcy on hold until Monday, as the city neared a deal with bond insurer Syncora Guarantee Inc, one of its most formidable hold-out creditors.

Syncora had argued it had been short-changed compared to other creditors. If approved, the deal will see Syncora drop its objection to the restructuring and the trial – which is studying the feasibility of Detroit’s plan to exit bankruptcy – could get a swift approval from U.S. Bankruptcy Judge Steven Rhodes.

Sep 10, 2014

U.S. judge delays Detroit bankruptcy trial until Monday

DETROIT (Reuters) – A federal judge on Wednesday put the landmark trial on Detroit’s plan to exit bankruptcy on hold until Monday, as the city neared a deal with one of its most formidable hold-out creditors.

Bond insurer Syncora Guarantee Inc and the city, after reaching an agreement in principle, requested late on Tuesday that the trial be delayed until Friday.

Sep 10, 2014

Syncora, Detroit reach deal in principle over city bankruptcy

DETROIT Sept 9 (Reuters) – Detroit and one of its last
hold-out creditors, Syncora Guarantee Inc, have reached an
agreement in principle over the city’s plan to adjust its debt
and exit bankruptcy, according to a federal court filing on
Tuesday.

The city and the bond insurance company asked the U.S.
Bankruptcy Court to suspend an ongoing confirmation hearing on
the plan until Friday so they can “address certain conditions
and logistics.”

Sep 9, 2014

Detroit, counties reach deal over water, sewer authority

DETROIT (Reuters) – Detroit reached a deal with three Michigan counties over regional water and sewer services that could drop the counties as objectors to the city’s plan to adjust its debt and exit bankruptcy, officials announced on Tuesday.

The deal between Detroit and Oakland, Wayne and Macomb counties creates a regional water and sewer authority, but allows the city to maintain control of its local system, Mayor Mike Duggan said at a news conference. It has the support of Michigan Governor Rick Snyder and the city’s state-appointed emergency manager Kevyn Orr, he added.

Sep 8, 2014

Detroit IT systems ‘fundamentally broken’: city’s tech officer

DETROIT (Reuters) – Detroit relies on antiquated and dilapidated information technology for basic city administration, which puts citizens’ safety at risk, makes simple administrative tasks impossible, and creates opportunities for security breaches, the city’s information officer testified at a bankruptcy hearing on Monday.

The second week of the landmark trial began with supporters of the city’s plan for paring debt and exiting the largest-ever municipal bankruptcy making a case the city urgently needs critical improvements and a means to pay for them in order to fully function.

Aug 14, 2014

U.S. municipal bond trading torpid in second quarter

WASHINGTON, Aug 14 (Reuters) – Traders slammed on the brakes
in the U.S. municipal bond market during the second quarter of
2014, with the amount of debt changing hands down more than 10
percent from a year earlier, Municipal Securities Rulemaking
Board data released on Thursday showed.

Volume fell 11.8 percent to $739 billion in the quarter from
$838 billion in the second quarter of 2013. The number of trades
dropped 17.6 percent to 2.24 million from 2.72 million in the
same period a year earlier, according to the MSRB, which
collects all trading data through its Electronic Municipal
Market Access platform.

Aug 13, 2014

Start of Detroit bankruptcy trial delayed a week

By Lisa Lambert

(Reuters) – U.S. Bankruptcy Judge Steven Rhodes on Wednesday pushed the start of the trial on Detroit’s exit from the largest municipal bankruptcy in U.S. history to Aug. 29 from Aug. 21, with opening statements scheduled for the following Tuesday, Sept. 2.

The first day of the trial, which falls on the Friday before the Labor Day federal holiday, will address objections from creditors who do not have lawyers.

Aug 12, 2014

Water deal could force another delay in Detroit bankruptcy trial

By Lisa Lambert and Karen Pierog

(Reuters) – A federal judge could once again push back the start date for the trial on Detroit’s exit from the largest municipal bankruptcy in U.S. history after some creditors said on Tuesday a possible settlement is snarling key components of the restructuring plan.

The complicated settlement rests on a tender offer for $5.2 billion of the city’s water and sewer revenue bonds. The deadline for bondholders to tender their debt voluntarily for repurchase is Aug. 21, the same day the trial is to begin, with the final settlement possibly becoming firm weeks later, in the middle of the proceeding.